The major U.S. index futures are pointing to a lower opening on Wednesday, with a lack of clarity on the economic recovery likely to roil the market yet again. A report released by the Commerce Department earlier in the day showed that durable goods orders rose by much less than expected, as business spending softened. After seeing a small bounce in the Asian session, crude oil futures are moving lower. The new home sales data to be released shortly after the markets open may also provide some trading direction to markets in today's session.
Economic uncertainty continued to roil the markets on Tuesday, as the major averages closed notably lower. The major averages opened notably lower and moved roughly sideways to end with losses in excess of 1%. The Dow Industrials closed down 133.96 points or 1.32% at 10,040 and the S&P 500 Index fell 15.49 points or 1.45% to close at 1,052, while the Nasdaq Composite ended 35.87 points or 1.66% lower at 2,124.
Twenty-five of the thirty Dow components closed lower, with Alcoa (AA), Boeing (BA) Caterpillar (CAT), Cisco Systems (CSCO), Disney (DIS), General Electric (GE) and United Technologies (UTX) declining sharply.
Among the sector indexes, the NYSE Arca Airline Index fell 2.01%, the NYSE Arca Securities Broker/Dealer Index declined 1.94%, the KBW Bank Index slipped 2.15%, the NYSE Arca Oil Index moved down 1.65% and the Dow Jones Transportation Average receded 1.88%. In the technology space, the Philadelphia Semiconductor Index dropped 1.66%, the NYSE Arca Disk Drive Index fell 2.61%, the NYSE Arca Computer Hardware Index lost 2.51% and the NYSE Arca Internet Index gave back 1.64%.
On the economic front, the National Association of Realtors reported that existing home sales slumped 27.2% month-over-month to a seasonally adjusted annual rate of 3.83 million units in July from a downwardly revised 5.26 million unit-rate in June. Economists expected a less severe decline to 4.72 million units. Inventories measured in months of supply rose to 12.5 months from 8.9 months in June. The median price of an existing home fell 0.2% month-over-month.
Currency, Commodity Markets
Crude oil futures are moving down $0.15 to $71.48 a barrel after declining $1.47 to $71.63 a barrel on Tuesday. Gold futures, which climbed $4.90 to $1,233.40 an ounce, are currently advancing $1.80 to $1,235.20 an ounce.
Among currencies, the U.S. dollar is trading at 84.327 yen compared to the 83.9035 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.2637 compared to yesterday's $1.2627.
Asia
The major Asian averages declined on Wednesday amid continuing diversification of investments out of risky bets such as equities into safe havens. A report showing that export growth in Japan slackened did not help matters further.
Japan's Nikkei 225 average opened moderately lower and moved sideways in the morning before plunging sharply in late afternoon trading. The index retreated further, closing down 149.75 points or 1.66% at 8,845. The market witnessed broad based selling.
In a key economic release from Japan, the Ministry of Finance reported that Japan's merchandise trade surplus increased to 804.2 billion yen in July, sharply higher than forecasts for a surplus of 466.3 billion yen. In June, the surplus was 686.4 billion yen.
Imports rose 15.7% year-over-year in July, shy of expectations for a 19.8% increase following the 26.1% increase in June. Exports climbed an annual 23.5%, beating forecasts for a 21.8% increase, although slower than the 26.1% increase in the previous month.
Hong Kong's Hang Seng languished below the unchanged line before closing down 23.73 points or 0.11% at 20,635. China-based stocks came under selling pressure, while most other sectors showed mixed sentiment.
Australia's All Ordinaries opened modestly lower and pulled back further in early trading before showing some degree of stabilization. However, the index began a steady decline in the afternoon to close down 61.80 points or 1.40% at 4,347. Energy stocks declined the most, with material stocks also seeing notable weakness.
Europe
The major European averages are moving lower for a second straight session on Wednesday, as traders have exercised caution ahead of batch economic reports from across the Atlantic. The French CAC 40 Index and the German DAX Index are moving down 1.38% and 0.47%, respectively the U.K.'s FTSE 100 Index is declining 0.87%.
Miner BHP Billiton (BHP) reported that its profit for the year ended in June rose to $12.72 billion from $5.88 billion last year, as revenues climbed 5.2% to $52.8 billion.In economic news, the Ifo Business Climate Index, based on conditions at 7,000 firms across Germany, climbed to 106.7 in August from 106.2 in the previous month, reaching its highest level in more than three years. Economists had predicted a score of 105.7. Ifo President Hans-Werner Sinn said, "The German economy remains robust. The firms have assessed their business situation more positively than in the previous month."The current situation index, which is a reflection of the current state of German businesses, rose to 108.2 from 106.8 in July. Analysts had forecast a score of 107.5. At the same time, the survey also showed reduced optimism for the coming six months. The expectations index fell to 105.2 from 105.6 but still came in above forecasts for a score of 104.3.
U.S. Economic Reports
A report released by the Commerce Department showed that new orders for durable goods rose 0.3% month-over-month in July, with the bulk of increase due to a jump in transportation orders, which jumped 13.1%. Economists had expected a 3% increase. Excluding transportation orders, new orders fell 3.8%.
Non-defense capital goods orders, excluding aircraft orders, - a key measure of capital spending - declined 8% in July. The data is likely to trigger anxiety about capital spending, which was partly responsible for the economic recovery that is underway.
The Commerce Department is due to release its new home sales report for July at 10 AM ET. The consensus estimate calls new homes sales of 334,000.
New home sales rose 23.6% to an annual rate of 330,000 in June from a downwardly revised reading of 267,000 for May. Meanwhile, inventories measured in terms of months of supply fell to 7.6 months in June from 9.6 months in May. The median price of new homes fell 0.66% year-over-year to $213,400.
The Federal House Finance Agency, or FHFA, is set to release its house price index for June at 10 AM ET. The index is a weighted, repeat-sales index that measures average price changes of single-family houses in repeat sales or refinancings on the same properties. In May, house prices rose 0.5% month-over-month, higher than the consensus estimate for 0.3% growth. On a year-over-year basis, house prices fell 1.2%, smaller than the 1.4% drop in April.
The Energy Information Administration is scheduled to release its weekly petroleum inventory report for the week ended August 20th at 10:30 AM ET.
The oil inventory report for the week ended August 13th showed that crude oil inventories fell by 0.8 million barrels to 354.2 million barrels. Notwithstanding the decline, crude oil stockpiles remained above the upper limit of the average range for this time of the year.
Gasoline inventories remained almost unchanged and remained above the upper limit of the average range. Meanwhile, distillate stockpiles rose by 1.1 million barrels and were still above the upper boundary of the average range. Refinery capacity utilization averaged 90% over the four weeks ended August 13th compared to 88.1% in the previous week.
Stocks in Focus
Earnings
Verifone Systems (PAY) reported that its third quarter net income rose to 36 cents per share from 29 cents per share last year. Net revenues rose to $261 million from the year-ago's $241 million. Analysts estimated earnings of 30 cents per share on $248.75 million.
Pacific Sunwear (PSUN) reported a second quarter loss of 22 cents per share on a non-GAAP basis, while its GAAP loss widened to 36 cents per share from 22 cents per share last year. Net sales declined to $218.34 million from $242.79 million last year. Analysts estimated a loss of 12 cents per share on revenues of $244.80 million. The company said it expects to reach positive comparable store sales in the fourth quarter but guided third quarter same store sales to a decline of 4%-9%.
Luxury homebuilder Toll Brothers (TOL) reported a third quarter profit of 33 cents per share compared to a loss of $2.93 per share last year. Revenues fell to $454.20 million from $461.38 million last year. The consensus estimates had called for a loss of 14 cents per share on revenues of $393.43 million.
Other Corporate News
Varian Medical Systems (VAR) could be in focus after it announced that it has entered into an agreement with Bank of America (BAC) to buy $225 million worth of its stock under an accelerated stock buyback program. The company also said it has amended its revolving credit facility with Bank of America to increase its borrowing capacity by $75 million to $225 million.
Coinstar (CSTR) is likely to see some activity after it announced a definitive agreement to sell its money transfer business to Sigue Corp. for $41.5 million, subject to a post-closing working capital adjustment. The company expects the deal to close next year.
Lockheed Martin (LMT) is likely to see some buying interest after it said it has received a $11.4 million contract modification from the U.S. Air Force for the sustainment of the F-2 Raptor Fleet. The contract initially issued in 2008 and extended in 2009.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.